The market has decisively broken, with a break of sp'1770, and also the taper'1 low of 1767. The VIX confirms it, with the first move into the 20s since early October 2013. Metals are catching a 'safety bid'.. Gold +$16. The door is now open to 1710/1690 by end week.
So...after a relatively flat open...the market has broken, and the bears are now in full control.
The BREAKS are decisive, so..I won't take any intra-day bounds seriously.
Any hope of a bounce to 1810/15...should be thrown out.
11.13am... sp'1761...and it sure looks kinda ugly. This morning is setting the tone for the week ahead.
Yes..there will be micro bounces...but 1800s..bye bye...
The 200 day MA is only 3.5% lower. whilst the VIX will probably be 25 or so.
*provisional break on the Dow..monthly...and that is where people should be looking right now.
11.24am.. real ugly morning..and we have strong confirmation via the bigger monthly cycles.
We have a VERY entertaining week ahead. Will be interesting to see how fast this can unravel, and just how high the VIX can spike..when we're in the 1710/1690 zone.
Metals slowly building gains.. Gold +$18
11.32am.. so...we're holding significant gains...
The bear flags on the daily charts are confirmed...key lows been taken out..and now the mainstream will no doubt start talking about the 200 the day MA.... 1707.
For those with eyes on the bigger picture..the real action will likely be in April...
..as I like to say..'don't get lost in the minor noise!'